Shifting Into Reverse Blog
#134: Using a reverse mortgage to move ahead following a job loss
HOME EQUITY CAN HELP TURN AN EMERGENCY INTO A PLAN While you had each planned to work up until social security “normal retirement age”, you have just been notified (you are now 63) of an involuntary severance. The company will continue to pay your salary and benefits through the end of this year, you’ve learned. […]
#133: Using a reverse mortgage to buy out spouse’s share in a divorce
HELPING HOME OWNERSHIP GO FROM TWO TO ONE The two of you have actually been living apart for the past two years (you in the home you own jointly, she in an apartment in Kentucky). Now in your early seventies (she in her late sixties) you had hoped to keep the marriage together despite your […]
#132: Using a reverse mortgage to defer Social Security benefits
TURNING HOUSING ASSETS INTO A BRIDGE With your tentative retirement scheduled for the end of this calendar year, you have been considering whether to begin claiming Social Security benefits at the start of retirement (you will have reached the age for full benefits). In the course of researching this topic, you found an article about […]
#131: Using a reverse mortgage to pay tax on 401K Roth conversion
AVOID CURRENT TAXATION, INCREASE FUTURE LEGACY After retiring in 2020, you had planned on leaving your 401(K) plan where it was in the company plan. Basically, satisfied with the investment options offered through that employer plan, you saw no reason to roll the money into an IRA. (Needless to say, your account was affected by […]
#130: Using a reverse mortgage to move from the coast to the heartland
HEARTLAND HECM FOR PURCHASE Your parents, in their mid-seventies and now fully retired, are planning to relocate from Washington State to the Midwest to be closer to you and the now college-aged grandkids. The two of you have been helping them search for the perfect suburban home. Expecting to clear close to $600,000 on the […]
#129: Incorporating a reverse mortgage as part of an overall estate plan
REVERSE MORTGAGE IDEAL TOPIC FOR “THE TALK” In advance of your daughters’ and grandkids’ upcoming Easter visit to Indiana from the West Coast, your oldest has mailed you a copy of the book Having the Talk, by Jack Tatar. The two of you, both retired and now in your late 70s, have experienced various health […]
#128 Using a reverse mortgage to pay Roth conversion tax
ROTH CONVERSION PROCESS SMOOTHENED WITH REVERSE MORTGAGE Now in your 70s, you’ve been giving thought to those looming required minimum distributions from IRA. Despite the recent dismal market performance, your rollover account is still over the seven-figure mark, and your accountant is actually recommending converting it to a Roth, either all at once or in […]
#127 – Using a reverse mortgage to supplement retirement plan withdrawals
USING HOUSING WEALTH TO “PAD” RETIREMENT PLAN WITHDRAWALS 03/06/23 With no training or expertise in finance, you have always liked to keep yourself informed by reading about the investment markets and the economy in general. The other day you came across a piece from Morningstar that seems to sum up your own situation: “retirees have […]
#126 Using a Reverse Mortgage to Prepay Funeral and Burial Expenses
USING HOUSING WEALTH TO LIGHTEN HEIRS’ LOAD 3/2/2023 The extended illnesses of several close friends have made you conscious of the burden their adult children are shouldering. You have estate planning documents; those were updated after you were widowed seven years ago, directing the disposition of your assets. However, you’ve come to realize that more […]